Question

On July 3, the ABC Company received $865 in cash on account from customers. The correct journal entry to record this transaction is debit Cash, $865; credit Income from Services, $865 debit Cash, $865; credit Accounts Payable, $865 debit Accounts Receivable, $865; credit Cash, $865 debit Cash, $865; credit Accounts Receivable, $865

          On July 3, the ABC Company received $865 in cash on account from customers. The correct journal entry to record this transaction is

debit Cash, $865; credit Income from Services, $865
debit Cash, $865; credit Accounts Payable, $865
debit Accounts Receivable, $865; credit Cash, $865
debit Cash, $865; credit Accounts Receivable, $865

On July 3, the ABC Company received 865 in cash on account from customers. The correct journal entry to record this transaction is

debit Cash,865; credit Income from Services, 865
debit Cash,865; credit Accounts Payable, 865
debit Accounts Receivable,865; credit Cash, 865
debit Cash,865; credit Accounts Receivable, 865

Added by Stephen C.

Principles of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon… 1st Edition

Chapter 9

Instant Answer

Solved by Expert Jerelyn Nevil

03/16/2024

Step 1

In accounting, an increase in an asset account is recorded as a debit. So, we debit Cash for $865. Second, this cash was received on account from customers, which means it was payment for services that the company had previously provided on credit. When the Show more…

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